Governor-Elect Ned Lamont Wins Tough Job

Governor-Elect Ned Lamont Wins Tough Job

“I recognize the significant burden unfunded mandates and property tax exemptions impose on municipalities,” Lamont says

For the first time in eight years, the state of Connecticut will have a new administration. Ned Lamont won in a hard fought battle over Bob Stefanowski, the Republican, and Oz Griebel, who ran as an Independent. Before the election, CCM had asked all of the gubernatorial candidates their views on a number of issues and held the final gubernatorial debate at the 2018 CCM annual convention. Based on the governor-elect’s answers in these forums, we can take a look at Lamont’s priorities and the challenges facing the state and new governor.

One of Lamont’s campaign pledges, in addition to avoiding raising income taxes, was to help municipalities curb over-reliance of the property tax and the underfunded Payments-in-Lieu-of-Taxes (PILOT). In the questionnaire, he states that he will prioritize “shared services and regional cooperation,” and “champion an effort to properly fund state formula aid to municipalities.” While the Governor-Elect doesn’t get to the finer details, much of his efforts seem directed at the fact that making sure what is promised to municipalities is given to municipalities. This is most evident in his response to a question on PILOT payments, when he says that he will negotiate the budget transparently to prevent “last-minute raids” on these funds.

In these areas, Lamont can be a powerful ally to Connecticut towns and cities. By ensuring the stability of initiatives like PILOT and Education Cost Sharing (ECS), municipalities can be more assured of their budgets without having to worry that the State will pull the rug from under them, allowing them to preserve what Lamont calls the “quality of life and the distinct character of our towns.” This can include service relationships with not-for-profits, an idea that he floated during the final gubernatorial debate that CCM held during our 2018 convention.

As a former board of selectmen member, it’s no surprise that Lamont understands how the chronic underfunding of these programs affects towns and cities: during the debate, he said that “sometimes the federal government will push obligations onto the state, and the state will push obligations onto [the towns].” Lamont will have the challenge to look at issues from both sides now that he is governor, especially when it comes to matters like unfunded mandates, education, and infrastructure.

Of note, Lamont says that he wants to “review current mandates and identify which are good public policy, which need to be backed up with state funding, and which should be repealed.” This shows an awareness of the over 1300 state mandates towns and cities face.

We urge the Governor-Elect to review the several studies that have examined state mandates, as well as CCM’s list of some of the most onerous mandates, and mandates for reform and repeal.

Furthermore, he writes in our questionnaire that he’s found great interest in CCM’s “This Report is Different,” saying that he shares the opinion that Connecticut should be modernizing state IT resources and practices to regionalism to sharing services between town governments and school districts. Aiming to be Connecticut’s next “Education Governor,” Lamont pays special emphasis on not only ECS, but the Teacher’s Retirement System (TRS).

On both fronts, taxes play an integral role in funding ECS and TRS. Former U.S. Secretary of Education, Arne Duncan singled out over-reliance on the property tax for education as a major culprit in education disparities. Lamont hopes to phase-in a new formula based on need faster than proposed and to increase state funding. It is not clear where those funds will come from. Fully funding ECS has only happened two times, but the funds to support that will need to come from somewhere or efficiencies will need to be found for his promises to become meaningful.

Lamont notes that “every child in Connecticut deserves an excellent public education,” and further says that our education system could be critical in making our state attractive to parents. But it is the young and the old that are leaving the state. Many millennials do not have home-buying prospects in the State, especially in larger cities where the young tend to be drawn to.

Governor-Elect Lamont will face many challenges: In Connecticut, over 70 percent of roads are in poor to mediocre condition. Unfunded mandates are decimating municipalities’ ability to determine their own path. The same for education costs, the opioid epidemic, the outmigration of crucial populations, maintaining businesses in the state, holding the line on taxes, and ensuring regional efficiencies. Fortunately, he has municipal leaders, his former colleagues, and organizations like CCM who are willing to roll up their sleeves to help resolve the State’s most pressing challenges.